Qatargas awarded more than $3 billion in contracts to Saipem this year

Qatargas has handed out the third LNG expansion deal since the beginning of this year to Italian contractor Saipem, boosting the total sum of awarded contracts to more than $3 billion.

The newest North Field award is also part of the Qatari LNG expansion project that includes building four mega trains with a capacity of 8 million tonnes per year in the Ras Laffan complex.

The $350 million contract relates to the $1.7 billion offshore EPCO contract Qatargas awarded to Saipem on February 22, the firm said in a statement on Tuesday. Qatargas exercised two additional options as part of that contract.

Moreover, the additional scope of work includes rerouting of the hydrocarbons from existing wellhead platform through the new facilities, due to existing pipeline being decommissioned, Saipem said.

As part of the deal, Saipem will build two additional riser platforms and two additional connecting bridges with existing wellhead platforms. The works also include two corrosion resistant carbon steel cladded intra-field pipelines with a length of 13 km overall and decommissioning of existing pipeline.

Saipem said it would integrate the new works with the project activities of the two previously awarded contracts, the North Field Production Sustainability Offshore and the North Field Production Sustainability Pipeline.

To remind, the Italian contractor won last month the EPCI pipeline contract worth more than $1 billion.

This first phase of the North Field East project will increase Qatar’s LNG production capacity from 77 to 110 mtpa.

Qatargas parent Qatar Petroleum has handed out the onshore engineering, procurement and construction contract to a joint venture consisting of Chiyoda and Technip.

The total cost of the North Field East project will reach $28.75 billion, according to QP.

QP also plans a second phase to further boost capacity to total 126 mtpa by 2027.

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